IBPS Quiz (English) -67

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Directions (1-5): Read the following passage to answer the given questions. Some words/phrases have been printed in bold to help you locate them while answering some of the questions.

At first glance, the government seems to have done a U-turn on imposing a mandatory 2 per cent expenditure from company profits on corporate social responsibility. The Companies Bill reportedly won't have this provision. Look closer, and it's a case of "mandating without mandating" as an industry voice describes it. The reworked proposal, it's said, asks firms to have a formal CSR policy targeting a 2 per cent spend, and to furnish details of funds going to social causes in annual reports. In other words, while keeping up a technical pretense of not legally arm-twisting India Inc., the Centre seeks to exert heavy moral pressure by stipulating disclosures if not actual expenditure. To quote the corporate affairs minister, CSR spending won’t be "voluntary" or "mandatory" but “somewhere in between" I Why this grey area, unless the government wants leeway to play guilt-inducing big brother?

Social spending should be self-willed, not least because Indian firms have a good record already. To boost private participation in social service further, the government should offer incentives such as "CSR credits" or tax benefits. At the same time, the legal system can rap firms that violate, say, green norms or cause other forms of public damage. As the finance minister conceded only recently, corporate social conscience can't be parachute dropped by politicians or law courts. Companies themselves know that CSR makes good sense, winning hearts and building brands. But for CSR to not be merely decorative or purely manipulative in the sense of deflecting attention from bad practices, companies' main Focus must be on core operations. What counts first is corporate performance driven by efficiency, ethics and good governance. That's how business keeps faith with share­ holders, delivers quality products and services to consumers, creates jobs and spurs economic growth. And that's also how it best benefits society.

1. Business can keep helping the society by

Winning hearts by investing more in social activities

Improving their performance, efficiency which results in economic growth

Building brands and competing images

Spending larger share of their profit on CSR

None of these

2. Which of the following best explains the meaning of the phrase "mandating without mandating”?

Motivating without making it compulsory

Mandating and then taking a U turn

A complete self-willed exercise

Mandating by incentivizing

None of these

3. Which of the social causes, for which expenditure under CSR may be made, are indicated in the passage?

Providing legal service to those who cannot afford it

Expenditure on building image of new products

Educating the masses in areas where literacy rate is low

Not indicated in the passage

None of these

4. According to the author, CSR spend should be

two percent of Company's profits

Targeted up to two percent of Company’s profit

two percent of Company's turnover

"Somewhere in between" one to two percent of Company's profits

Completely voluntary

5. Which of the following best explains the meaning of the phrase "parachute-dropped"?

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